BMO Capital Markets has updated its outlook on Bird Construction Inc. (BDT: CN) (OTC: BIRDF), increasing the price target to C$35.00 from the previous C$30.00, while reiterating an Outperform rating on the stock.
The revision follows Bird Construction's recent presentation of its strategic plan for the years 2025-2027 during their Investor Day in Toronto.
The company's ambitious strategic plan outlines a goal for 10% annual organic revenue growth, which includes a 5% increase in 2025 attributed to the acquisition of Jacobs Bros.
Additionally, Bird Construction aims to achieve EBITDA margins of 8% by 2027, a significant rise from the current approximate 6%.
In a move that signals confidence in its financial strategy, Bird Construction has also announced a substantial 50% increase in its monthly dividend, bringing it to $0.07 per share.
This is in line with the company's target payout ratio of 33%, which suggests that further dividend increases could be expected in the future.
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